Lower sales and prices for litigation and research pushed Johnson & Johnson gain down 14%, but the healthcare giant beat revenue and profit expectations, pushing its own shares up.
The manufacturer of Tylenol and psoriasis drug Stelara on Tuesday said adverse currency exchange rates reduced earnings by nearly 4%, leaving overall sales flat at $20.03 billion, even though that spat analysts’ projections that are muted.
Sales of prescription medications were the bright spot now and rising 4% accounting for over half of the New Brunswick, New Jersey, company revenue.
“The good far outweighs any probable questions or worries investors might have,” especially since overall drug sales improved despite more economical competition to key drugs, Danielle Antalffy of SVB Leerink composed to investors. “These quarterly results should boost investor confidence”
Zytiga, which had been J&J’s third-highest seller, saw sales drop 20% from a year ago.
Before this past year, J&J completed a essential purchase, paying $3.4 billion for Auris Health, making robotic technology used in lung diagnostic and treatment procedures. Johnson & Johnson reported the agreement will expand its electronic operation portfolio. J&J also struck a partnership to develop gene therapies.
Adjusted for analysis and development expenditures and costs from ongoing litigation over its baby powder allegedly inducing cancer in some individuals, earnings were $2.10 per share, 7 cents better than Wall Street expected, according to a survey by Zacks Investment Research.
Revenue was $20.02 billion, with $10.24 billion of that coming from pharmaceutical drugs. Sales were headed by Stelaraup 32.4% to $1.41 billion. Greater sales of Darzalex and cancer drugs Imbruvica, HIV drug Prezista and Hormone therapy Invega Sustenna lifted the outcomes, and J&J reported that a new study of diabetes medication Invokana revealed it delayed the demand for kidney dialysis. That should boost future earnings.
Addressing the people furor over soaring prices for brand-name medicines, Chief Financial Officer Joseph Wolk told analysts that J&J’s greater sales continue to be driven by use of its products, not price increases.
Earnings of consumer health products dipped 2.4% to $3.32 billion. Edward Jones analyst Ashtyn Evans wrote to investors that the 14% decrease in sales of infant products is unsatisfactory,”given the company simply launched multiple new products to compete with labels.”
J&J noted it recently launched new AcuVue Oasis contact lenses that darken in bright sunshine first.
The business reaffirmed its January forecast for 2019 earnings at $80.4 billion to $81.2 billion, however raised the low end of its earnings-per-share prediction 3 pennies, giving a new selection of $8.53 to $8.63per cent
In morning trading, J&J stocks jumped $3.93, or 2.9%, to $140.45.
Follow Linda A. Johnson at https://twitter.com/LindaJ_onPharma